What term describes the overall change in cash during the period in the cash flow statement?

• A. Net change in cash
• B. Ending cash balance
• C. Gross cash flow
• D. Beginning cash balance

Answer: (A)

Net change in cash captures how much cash increased or decreased over the period. In a cash flow statement, you combine cash from operating, investing, and financing activities to obtain this total—the delta between the beginning and ending cash. It shows the overall impact of all cash inflows and outflows for the period. The ending cash balance is determined from the beginning cash plus this net change (Ending = Beginning + Net change in cash). Beginning cash is simply the cash on hand at the start, not the change. Gross cash flow isn’t the standard term for the overall change in cash.